IFGL Refractories gained 15.83% or Rs 8.15 to close at Rs 59.65. It touched an intraday high of Rs 61.80 and an intraday low of Rs 54.10. There were pending sell orders of 496 shares, with no buyers available.Why the run up?
The company has acquired two US based companies EI Ceramics LLC and CUSC International Ltd for a total of USD 13 million. The acquisitions will be partly funded by equity and partly debt with the major portion being debt. The deal is expected to help the refractories manufacturer expand its capacity.
EIC designs, manufactures and supplies isostatically pressed continuous casting refractory to several major steel-makers in North America, which would provide the Indian refractory firm with a lot of synergies.
In an interview, KamalSarda, COO, IFGL Refractories said,"At the current level, at half year, the two companies had about USD 6.5 million. We expect to add about USD 13 million to USD 14 million this year. We hope it would substantially increase after we have absorbed everything." The company sees a 15-20% growth on current operations in the current fiscal.
The company is engaged in the manufacture of specialised refractories and requisite operating systems for the steel industry. The IFGL Group of companies is focused on the global markets and sells in European Community, Americas, South East Asia, Oceania, Middle-East, South Africa, Egypt, Algeria, Nigeria, Russia, Kazakisthan, Singapore, Japan, Taiwan and Phillipines.
